As the length of the unexpired term of a Axmouth and Branscombe residential lease diminished so does its value and therefore the value of your property. Where the lease has, more than 125 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Axmouth and Branscombe will meet the qualifying criteria; nevertheless a conveyancer can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Engaging our service will provide you better control over the value of your Axmouth and Branscombe leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Teddy, came very near to the eighty-year mark with the lease on his first floor apartment in Axmouth and Branscombe. Having purchased his home 19 years previously, the unexpired term was of little concern. As luck would have it, he became aware that he would imminently be paying an escalated premium for Extending the lease. Teddy was able to extend his lease just under the wire in April. Teddy and the freeholder eventually settled on sum of £6,000 . If he had missed the deadline, the amount would have escalated by at least £925.
In 2010 we were phoned by Dr Aarav Gray who, having moved into a studio apartment in Axmouth and Branscombe in April 2003. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical homes in Axmouth and Branscombe with a long lease were worth £243,000. The mid-range amount of ground rent was £65 billed monthly. The lease elapsed on 16 January 2089. Having 63 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of professional charges.
Last Christmas we were approach by Mr Alex Morgan , who took over the lease of a purpose-built flat in Axmouth and Branscombe in May 2005. The question was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical homes in Axmouth and Branscombe with 100 year plus lease were in the region of £181,600. The mid-range ground rent payable was £55 collected annually. The lease ran out on 14 June 2078. Taking into account 52 years outstanding we estimated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of legals.